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Responsible and responsive investing

A dynamic responsible process

Despite the widespread interest in the integration of environmental, social, and governance (ESG) considerations into portfolios, there is still a lack of consensus on how to approach responsible investing. Business models and market expectations are always evolving and, therefore, necessitate a more dynamic approach rather than the static one frequently seen in the market.

To overcome this challenge, the L&G Responsible Exclusions UCITS ETF range is guided by an expert advisory Sustainability Committee to provide a more dynamic approach to responsible investment.

The committee – comprising experts in a diverse range of fields – actively researches market developments and monitors companies to identify both those that are engaged in irresponsible behaviour and those becoming more responsible. The committee can thus set a high threshold for inclusion in its responsible index, enabling it to respond to shifts in views on responsible investing.

L&G Responsible Exclusions UCITS ETF range

L&G ETF has partnered with Foxberry, an independent company offering expertise concerning all aspects of index management. www.foxberry.com

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LGIM’s approach to corporate governance

As a responsible investor, Legal & General Investment Management (LGIM) furthermore engages the boards of the companies in which the ETFs do hold shares to promote best practices. This active engagement in corporate governance can help specifically target any companies that may be flagged by the committee’s ‘watch list’ of companies at risk of exclusion.

At LGIM, we have a rich history in responsible investing because we believe well governed companies, which treat employees fairly and work to minimise their environmental impact, are likely to be good investments. Our credentials include:

  • Award-winning Corporate Governance team, with a 20-year track record
  • Part of the wider L&G Group, building a better society for the long term
  • Leading provider of ESG solutions to some of the world’s largest organisations

We express our commitment to responsible investing through company engagement, using our voting rights globally, working with regulators and policymakers, and collaborating with other investors and stakeholders to help raise global market standards across all our products.

To learn more about the LGIM’s approach visit our Future World blog.

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Important Information

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.